German construction industry on the rise: orders increase in August for the second time in a row

German construction industry on the rise: orders increase in August for the second time in a row

For the second time in a row, companies in the German construction industry received more orders in August. New business in the German construction industry grew by 10.8 percent (in real terms) compared to the previous month, adjusted for inflation, as the Federal Statistical Office announced. There was particularly strong growth of 18.6 percent in civil engineering, such as road construction. In building construction, which is primarily characterized by residential construction, there was only an increase of 1.8 percent. Compared to the same month last year, orders rose by 17.5 percent after adjusting for prices. Sales in the construction industry increased by 3.8 percent in August compared to the same month last year. However, sales from January to August fell by 4.0 percent in real terms compared to the same period last year. The mood in housing construction is particularly bad, the ifo business climate is at its lowest level since the survey began in 1991. More than 21 percent of companies reported canceled projects. Building permits for apartments fell by almost a third. In order to improve the situation, the federal government agreed on various measures as part of a “housing construction summit”, such as suspending tightening energy standards for new buildings and offering tax advantages and more attractive funding programs.

According to a report from www.tagesschau.de, companies in the German construction industry are facing challenges. Although there was significant growth in orders in August, sales fell from January to August. The situation is particularly bad in housing construction, the mood is negative and many projects have been canceled. Rising interest rates from the European Central Bank and increased construction prices are putting a strain on the industry. However, the federal government has taken measures to improve the situation and create more living space. These measures can have a positive impact on the market and promote the growth of the construction industry. However, it remains to be seen to what extent the measures can actually be implemented and what impact they will have in the long term. Overall, the situation in the construction industry remains challenging and further efforts are required to promote long-term growth.